State-administered assistance for microgrids

(a) In general Part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.) is amended by adding at the end the following: 367. State-administered assistance for microgrids (a) Definitions In this section: (1) Low-income community The term low-income community means any census block group in which 30 percent or more of the population are individuals with an annual household income equal to, or less than, the greater of— (A) an amount equal to 80 percent of the median income of the area in which the household is located, as reported by the Department of Housing and Urban Development; and (B) 200 percent of the Federal poverty line. (2) Microgrid The term microgrid means a group of interconnected loads and distributed energy resources (which may include energy generation resources, energy storage, energy efficiency resources, district heating and cooling, combined heat and power, demand response and load control tools, and other management, forecasting, and analytical tools) within clearly defined electrical boundaries that— (A) acts as a single controllable entity with respect to the electric grid; and (B) has the ability to connect to, disconnect from, or run in parallel to the electric grid and operate in grid-connected mode or islanded mode. (3) Rural area The term rural area means any area other than— (A) a city or town that has a population of greater than 50,000 inhabitants; and (B) any urbanized area contiguous and adjacent to a city or town described in subparagraph (A). (b) Program Not later than 1 year after the date of enactment of the STRONG GRID Act of 2026, the Secretary, in consultation with the Director of the Office of Cybersecurity, Energy Security, and Emergency Response, shall establish a program under which the Secretary shall allocate funding to State energy offices to implement an Electric Grid Resilience Program in accordance with this section. (c) Funding allocation The Secretary shall allocate funding under subsection (b) in accordance with the allocation formula in effect on December 31, 2024, for the State Energy Program established under this part. (d) Electric Grid Resilience Programs (1) In general An Electric Grid Resilience Program carried out by a State energy office using funds provided under this section shall award competitive grants to eligible entities to support the deployment of microgrids. (2) Eligible activities A grant awarded under an Electric Grid Resilience Program may be used for— (A) conducting a microgrid needs assessment or feasibility study; (B) designing and engineering a microgrid, including the solicitation of technical assistance— (i) to address permitting and siting challenges; (ii) to understand the technical characteristics and management of microgrids; (iii) to develop a maintenance plan for the microgrid; and (iv) to develop cybersecurity and data privacy measures unique to microgrid performance and operation; (C) construction of a microgrid and associated energy resources, including— (i) energy generation assets; (ii) energy storage; and (iii) technologies to manage the operation and security of the microgrid; (D) implementation of advanced cybersecurity or operational controls for an existing microgrid; (E) the technical and physical operation and maintenance of a newly constructed microgrid; (F) training existing staff on the real-time systems specific to microgrids; and (G) other activities relating to microgrid deployment, as the applicable State energy office determines to be appropriate. (3) Priorities In awarding grants under an Electric Grid Resilience Program, a State energy office shall give priority to projects that— (A) improve energy resilience, such as by reducing the frequency, duration, or scale of blackouts or power system failures; (B) improve the reliability of electric service; (C) generate multiple energy value streams, including ancillary services; (D) address a need identified in a State or local hazard mitigation or emergency preparedness plan; (E) address a need identified in a State energy security plan (as defined in section 366(a)); (F) primarily benefit a rural area or low-income community; (G) provide ancillary services to the grid, such as demand management or congestion control; or (H) deploy distributed or renewable energy resources. (4) Cost share The recipient of a grant under an Electric Grid Resilience Program shall be required to provide not less than 25 percent of the cost of the project carried out using the grant. (e) Administrative expenses A State may use up to 10 percent of the amount allocated to the State under this section for the costs of administering an Electric Grid Resilience Program. (f) Funding There is appropriated, out of any funds in the Treasury not otherwise appropriated, $500,000,000 to carry out this section for the period of fiscal years 2027 through 2031.. (b) Technical amendment The table of contents for the Energy Policy and Conservation Act (Public Law 94–163; 89 Stat. 872) is amended by inserting after the item relating to section 366 the following: Sec. 367. State-administered assistance for microgrids..